AN INTERNATIONAL MULTI STAKEHOLDER INITIATIVE …

AN INTERNATIONAL MULTI

STAKEHOLDER INITIATIVE

TRANSFORMING MARKETS TO

MAKE SUSTAINABLE PALM

OIL THE NORM

OUTLINE

What is Palm Oil?

The need for certified sustainable Palm Oil

The Roundtable on Sustainable Palm Oil (RSPO)

Where we are today?

Where do we go from here?

WHAT IS PALM OIL?

- Ca’da Mosto, 15th century explorer on discovering palm oil

“It has the scent of violets, the taste of olive oil and a colour

which tinges food like saffron, but is more attractive!”

WHY PALM OIL?

PALM OIL IS…

…a highly versatile vegetable oil

…used in many food and non-food products

…produced in tropical countries

…rapidly growing in market share

…the world‟s top selling vegetable oil

…highly versatile, being used in more than

half of packaged supermarket

products today

THE TOP PALM OIL

PRODUCING COUNTRIES

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Indonesia Malaysia Rest of the World

47%

39%

14%

MAJOR IMPORTERS OF PALM OIL

(2012/13 July)

India 20%

China 16%

EU-27 14%

Pakistan 6%

Malaysia 4%

Egypt 3%

United States 3%

Bangladesh 3%

Singapore 2%

Vietnam 1%

Other 28%

THE ADVANTAGES OF PALM

OIL

Highly efficient

producers of oil

Requires less land

than other oil crops

(Images courtesy www.mongabay.com)

AVERAGE YIELD PER YEAR (tonnes of oil per hectare)

0 0.5 1 1.5 2 2.5 3 3.5 4

Oil Palm

Rapeseed

Sunflower

Soybean

3.68

0.59

0.42

0.36

WHY SUSTAINABLE

PALM OIL?

Workers rights and conditions

Treatment of smallholders

Land ownership conflicts

SOCIAL ISSUES IN

OIL PALM CULTIVATION

Climate change Biodiversity loss

Forest, peat land conversion

ENVIRONMENTAL ISSUES

IN OIL PALM CULTIVATION

WHAT IS THE

The RSPO was formed in 2004 with the objective of

promoting the growth and use of sustainable oil palm

products through credible global standards and

engagement of stakeholders.

The seat of the association is in Zurich, Switzerland,

while the secretariat is currently based in Kuala

Lumpur, with a satellite office in Jakarta.

RSPO is a not-for-profit association that unites

stakeholders from seven sectors of the palm oil industry

- oil palm producers, palm oil processors or traders,

consumer goods manufacturers, retailers, banks and

investors, environmental or nature conservation NGOs

and social or developmental NGOs - to develop and

implement global standards for sustainable palm oil.

VISION

To transform

markets to make

sustainable Palm

Oil the norm.

MISSION

To advance the production, procurement, finance and

use of sustainable palm oil products.

To develop, implement, verify,

assure and periodically review

credible global standards for the

entire supply chain of sustainable

palm oil.

To engage and commit all

stakeholders throughout the

supply chain, including

governments and consumers.

To monitor and evaluate the

economic, environmental

and social impacts of the

uptake of sustainable palm

oil in the market”

HIGHLIGHTS

Commenced in 2003 with 7 members

Formally established in April 2004

Multi-stakeholder association

International non-for-profit association

Palm oil supply chain

Promotes growth & use of sustainable

Oil Palm products through global standards

RSPO Principles and Criteria (P&C)

ORGANIZATION STRUCTURE

Ordinary Members

Affiliate Members

Supply Chain

Associates

General Assembly

Executive Board

Secretary General

Standing Committee

Standing Committee

Standing Committee

Standing Committee

Trade & Traceability

Communications & Claims

Standards & Certifications

Finance

Working Groups

Working Groups

Working Groups

Working Groups

8 PRINCIPLES

1. Commitment to transparency

2. Compliance with applicable laws and regulations

3. Commitment to long-term economic and financial viability

4. Use of appropriate best practices by growers and millers

5. Environmental responsibility and conservation of natural resources and biodiversity

6. Responsible consideration of employees and of

individuals and communities affected by growers

and mills.

7. Responsible development of new plantings

8. Commitment to continuous improvement in key

areas of activity

MEMBERSHIP

• As the RSPO gains recognition and momentum, membership of the Roundtable is

growing, and the volume of sustainably produced palm oil on world markets is

expected to grow exponentially.

• RSPO has three categories of membership:

1. Ordinary Membership (OM) consists of the main players in the palm oil supply

chain - oil palm growers, processors & traders, manufacturers of consumer

goods, retailers, banks & investors, environmental NGOs and social

/developmental NGOs.

2. Affiliate Membership is open to any individual or organizations that are not

included in the 7 Ordinary Membership sectors and are interested in supporting

the objectives and activities of RSPO.

3. The third category which was introduced more recently enables the

organizations that are active in the supply chain for certified sustainable palm

oil, but do not purchase more than 500 MT palm oil products per year to be

Supply Chain Associates.

(Latest statistics on membership can be accessed at

http://www.rspo.org/en/membership_key_statistics)

http://www.rspo.org/en/membership_key_statistics


964 MEMBERS

FROM OVER 50 COUNTRIES

Latest data at


RSPO Members

Ordinary Members: 706

Affiliate Members: 103

Supply Chain Associates: 155



MULTI STAKEHOLDER

MEMBERSHIP

Banks & Investors 2%

Consumer Goods Manufacturers

35%

Environmental NGOs 3%

Growers 17%

Processors & Traders

35%

Retailers 7%

Social NGOs 1%

Data as of May 2012. Latest data at



MEMBERSHIP BY COUNTRY

UK 17%

Malaysia 16%

Indonesia 15%

Germany 13%

France 10%

Netherlands 10%

USA 7%

Singapore 4%

Switzerland 4%

Australia 4%




WHERE IS THE

TODAY?

Code of Conduct for members

Independent certification bodies

Principles, specific criteria and indicators for

sustainable Palm Oil production

Supply chain certification systems

Guidelines on communication and claims

CODE OF CONDUCT

(Grievance panel supervises compliance)

- Annual Communications of Progress

“All members will publicly commit to production,

procurement and use of sustainable palm oil.”

SUSTAINABILITY

PRINCIPLES

1. Transparency

2. Use best practices

3. Care for environment,

natural resources,

and biodiversity

4. Consider rights of

workers, smallholders

5. Develop new plantings

responsibly

SPECIFIC SOCIAL CRITERIA

AND INDICATORS

1. Rights to the land are not

legitimately contested

2. Workers‟ are paid reasonably and

living conditions are decent

3. The right to form trade unions is

respected

4. Health and safety plans are

implemented

5. Smallholders are treated fairly by

mills

(Image courtesy www.mongabay.com)

SPECIFIC ENVIRONMENTAL

CRITERIA AND INDICATORS

1. Since November 2005, new

plantings did not replace primary

forests or high conservation

value areas

2. Erosion and degradation of soils

are minimized

3. Pollution and waste is reduced

4. Use of fires is avoided

RESPECTING DIVERSITY: NATIONAL

INTERPRETATIONS OF GUIDELINES

Papua New Guinea (2008)

Malaysia (2008)

Indonesia (2008)

Colombia / L. America (2010)

Ghana (2011)

Thailand (2012)

PLANT / MILL

CERTIFICATION PROCEDURE

Approved certification bodies listed

on RSPO website

Audit by certification body (1 month

notice)

Unit of certification: oil mill and

suppliers

Compliance with Principles, Criteria

and Indicators

Phase I: Document review

Phase II: Field checks,

stakeholder interviews

Audit Report, summary

published online

SUPPLY CHAIN MODELS

THE PALM OIL SUPPLY CHAIN

Many links

Potential for

mixing

SUPPLY CHAIN MODELS

‘Identity preserved’:

Sustainable oil kept apart, traceable to plantation

‘Segregated’:

Mixing of sustainable palm oil batches is allowed

‘Mass Balance’:

Mixing of sustainable and conventional oil allowed if

monitored administratively

Monitored through RSPO eTrace (www.eTrace.rspo.org)

Book & Claim Certificates - Monitored by GreenPalm

www.greenpalm.org

http://www.eTrace.rspo.org/

SUPPLY CHAIN MODEL

„Identity Preserved‟

100

ton

100

ton

100

ton

100

ton

certified

MILL TRANSPORTER REFINER END USER


RPSO eTrace

SUPPLY CHAIN MODEL

„Segregated‟

200

ton

200

ton

certified

100

ton

MILL

TRANSPORTER REFINER

100

ton

END USER


100

ton

MILL

100

ton

END USER

RPSO e-TRACE

SUPPLY CHAIN MODEL

„Mass Balance‟

certified

100

ton

MILL

100

ton

END USER


RPSO e-TRACE

• ‘Book and Claim’ by GreenPalm: - Growers, end-users trade volume credits online

– Certificates trading have a significant role to play, particularly in these areas:

• Accessing new and large palm oil demand markets such as China and India;

• A viable and pragmatic option for complex derivatives of palm oil;

• A model that caters for the production and provision of CSPO from smallholders.

– www.greenpalm.org

SUPPLY CHAIN MODEL Certificates Trading ‟

SUPPLY CHAIN

CERTIFICATION PROCEDURE

Verifies movement of oil through the supply chain

Step-by-step documentation

Performed by 3rd-party certification bodies

More info: www.rspo.org

http://www.rspo.org/

MILESTONES

CONSUMER COMMUNICATIONS

RSPO trademark developed

for/on/about – product

communication

Rules for use, communication and

licensing under development

Trademark registration

procedures begun in more than 60

countries

Launched: June 2011

HIGHLIGHTS

8 April 2004: RSPO formerly established under Article 60 of the Swiss Civil Code

2008: National Interpretations (NIs) of the generic Principles & Criteria for Indonesia, Malaysia and PNG approved

21 August 2008: 1st P&C certification for United Plantations.

27 November 2008: Inaugural shipment of CSPO arrived in Rotterdam in November

November 2009: Adoption of the RSPO Supply Chain Certification Systems

October 2010: RSPO global membership reached 500 Ordinary Members

2010: First RSPO certificate to Latin America, Daabon Group, Colombia

June 2011: Launch of the RSPO Trademark

August 2011: First I million hectares of certified production area around the world

August 2011: First RSPO certificate to Brazil, Latin America by Agropalma

August 2011: Global production of CSPO reaches 5 million tonnes, 10% of global palm oil production

April 2012: Achievement of 6 million metric tonnes of CSPO in annual production capacity (marked by public listed New Britain Palm Oil Limited‟s latest mill in Papua New Guinea)

TABLE 1: Key Statistics for Certification

Summary as of 29th February

2012

Certification

• No. of SCC

Companies

• No. of SCC

Facilities

• No. of

Growers

Certified

• No. of Palm

Mills

Certified

n/a

n/a

10

58

22

36

1

6

10

14

1

2

166

319

30

141

Production

• Production

Area (ha)

• Certified

Area (ha)

1,130,969

1,299,891

1,148,134

1,336,910

1,148,134

1,336,910

(> todate)

(>todate)

Annual

Production

Capacity

• FFB (mt)

• CSPO (mt)

• CSPK (mt)

26,680,440

5,573,202

1,296,488

26,888,256

5,704,342

1,324,981

26,888,256

5,704,342

1,324,981

(> todate)

(> todate)

(> todate)

Uptake

• CSPO

Uptake /

CSPO (mt)

52.0% 40.2% 44.0% 44.8%

2011 01-02/2012 Feb 2012 Total

Data as of May 2012. Latest data at http://www.rspo.org/en/key_statistics

http://www.rspo.org/en/key_statistics

CSPO & CSPK Annual Production Capacity (mt) by Year

Data as of May 2012. Latest data at http://www.rspo.org/en/key_statistics

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

CSPO Uptake

CSPK Uptake

http://www.rspo.org/en/key_statistics

TM LICENSES ISSUED

BY COUNTRY



0

5 1 1

11 8

3 1

9

1 1 1

12

7

61

0

10

20

30

40

50

60

70


TM LICENSES ISSUED BY

STAKEHOLDER CATEGORY



0

10

20

30

40

50

60

70

ConsumerGoods

Manufacturers

Growers Processors &Traders

Retailers Supply ChainAssociate

Grand Total

31

5

17

6 2

61


RSPO‟s ASPIRATIONS

Grow supply of certified palm oil

Grow demand for certified palm oil

including in India & China

Grow RSPO membership

Engage governments

Engage and educate smallholders

ENGAGING MORE THAN

3 MILLION SMALLHOLDERS

They maintain 20% of acreage

RSPO Task Force on

smallholders

Promote smallholder interests

within RSPO

Raise awareness among

smallholders

Adapt RSPO standards and

procedures

Develop group certification

protocol

IN CONCLUSION

KEY DOCUMENTS AT

www.rspo.org

Statutes

Principles & Criteria

Criteria: National Interpretations

Code of Conduct

Supply Chain Certification

Systems

Guidelines on Communication &

Claims

2011 RSPO CSPO Growth

Interpretation Narrative

http://www.rspo.org/en/key_documents

http://www.rspo.org/en/key_documents

RSPO Secretariat

Kuala Lumpur, Malaysia

www.rspo.org

[email protected]

http://www.rspo.org

AN INTERNATIONAL MULTI STAKEHOLDER INITIATIVE …

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